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For a relatively small investment. These valuable resources are often grossly under-utilized. an important factor of profitability is the optimized use of assets. In retail. merchandising is any practice which contributes to the sale of products to a retail consumer. including merchandising fixtures. learn from. and operations used to promote and sustain certain categories of commercial activity. these assets can be effectively leveraged to enhance customer experience and sales revenue. The proposed new method of successfully managing your retail merchandising and in-store advertising campaigns can solve many of your challenges by: • Accelerating the campaign launch cycle and reducing the amount of repetitive steps involved to getting your promotions out in front of customers • Counting on the local store to execute campaigns exactly as specified through in-depth and easy-to-use instructions • Monitoring and reporting of campaign launch results . merchandising refers to the variety of products available for sale and the display of those products in such a way that it stimulates interest and entices customers to make a purchase.Merchandising is the methods. the biggest assets are almost always the retail storefronts. practices. and represent an attractive opportunity for increasing profit margins. inquire about.e. i. For every business. At a retail in-store level. The following aspects to successful merchandising tactics: • Promoting timely products and services to new and existing customers • Basing your promotions specifically upon customers’ personal needs • Doing so at a time when they are thoughtful of related issues and insulated from competitors Messages. and even purchase from. when they are inside your stores • Unifying the process across all your stores at the same time Experience has proven that merchandising works. So much so that companies spend tens of thousands of dollars to set up and furnish complex systems for their customers to interact with. In the broadest sense.
in the form of store design. and in-store promotions. accurate and pleasant checkout clerks.• Decreasing amounts of wasted materials and precious employee time • Providing detailed floor plan and graphical representations of the entire store network • Promoting a standardized and unified brand • Customizing the presentation to fit local needs and buying habits • Ending the need for executive travel out to remote branches to check on merchandising setups Objectives of the Store Environment Get customers into the store Serves a critical role in the store selection process Important criteria include cleanliness. the more they tend to buy Retailers focusing more attention on in-store marketing – marketing dollars spent in the store. labeled prices. merchandise presentation. visual displays. convert them into customers buying merchandise The more merchandise customers are exposed to that is presented in an orderly manner. should lead to greater sales and profits (bottom line: it is easier to get a consumer in your store to buy more merchandise than planned than to get a new consumer to come into your store) . and well-stocked shelves The store itself makes the most significant and last impression Once they are inside the store.
dressing rooms. service desks. cash office. restrooms Aisles. layaway areas. store offices.Objectives of Good Store Design Design should: be consistent with image and strategy positively influence consumer behavior consider costs versus value be flexible recognize the needs of the disabled – The Americans with Disabilities Act Types of Floor Space in Store Back Room – receiving area. customer service facilities Merchandise Space Floor Wall . stockroom Department stores (50%) Small specialty and convenience stores (10%) General merchandise stores (15-20%) Offices and Other Functional Space – employee break room. Service Areas and Other Non-Selling Areas Moving shoppers through the store.
bins.Location of Departments Relative location advantages Impulse products Demand/destination areas Seasonal needs Physical characteristics of merchandise Adjacent departments Feature Areas The areas within a store designed to get the customer’s attention which include: End caps – displays located at the end of the aisles Promotional aisle/area Freestanding fixtures Windows Walls Point-of-sale (POS) displays/areas Fixture Types Straight Rack – long pipe suspended with supports to the floor or attached to a wall Gondola – large base with a vertical spine or wall fitted with sockets or notches into which a variety of shelves. peg hooks. baskets and other hardware can be inserted. Four-way Fixture – two crossbars that sit perpendicular to each other on a pedestal Round Rack – round fixture that sits on pedestal .
into which a variety of hardware can be inserted Can be merchandised much higher than floor fixtures (max of 42” on floor for round racks on wall can be as high as 72 Merchandise Display Planning Shelving – flexible. base decks of gondolas or flats – easy to maintain and gives image of high volume and low price Dumping – large quantities of small merchandise can be dumped into baskets or bins – highly effective for soft lines (socks. low cost image Three Psychological Factors to Consider in Merchandising Stores Value/fashion image Trendy. grocery products) – creates high volume.creates high fashion image Stacking – for large hardliners can be stacked on shelves. candy. exclusive. easy to maintain Hanging Pegging – small rods inserted into gondolas or wall systems – can be labor intensive to display/maintain but gives neat/orderly appearance Folding – for soft lines can be folded and stacked on shelves or tables . Other common fixtures: tables. pricy vs. value-oriented Angles and Sightlines . flat-based decks Wall Fixtures To make store’s wall merchandisable. wash cloths) or hardliners (batteries. large bins. wall usually covered with a skin that is fitted with vertical columns of notches similar to those on a gondola.
Customers view store at 45 degree angles from the path they travel as they move through the store Most stores set up at right angles because it’s easier and consumes less space Vertical color blocking Merchandise should be displayed in vertical bands of color wherever possible – will be viewed as rainbow of colors if each item displayed vertically by color Creates strong visual effect that shoppers are exposed to more merchandise (which increases sales) POS Displays Assortment display – open and closed assortment Theme-setting display Ensemble display Rack display Case display Cut case Dump bin Visual Merchandising The artistic display of merchandise and theatrical props used as scene-setting decoration in the store Several key characteristics Not associated with shop-able fixture but located as a focal point or other area remote from the on-shelf merchandising (and perhaps out of the reach of customers) .
and reflect merchandise offered inside Atmospherics The design of an environment via: visual communications lighting color sound scent To stimulate customers’ perceptual and emotional responses and ultimately influence their purchase behavior . may just be interesting display of items related to merchandise or to mood retailer wishes to create Visuals should incorporate relevant merchandise to be most effective Retailers should make sure displays don’t create walls that make it difficult for shoppers to reach other areas of the store Store Front Design Storefronts must: Clearly identify the name and general nature of the store Give some hint as to the merchandise inside Includes all exterior signage In many cases includes store windows – an advertising medium for the store – window displays should be changed often. Use of props and elements in addition to merchandise – visuals don’t always include merchandise. be fun/exciting.
logo and retail identity Institutional signage Directional.Visual Communications Name. departmental and category signage Point-of-Sale (POS) Signage Lifestyle Graphics Coordinate signs and graphics with store’s image Inform the customer Use signs and graphics as props Keep signs and graphics fresh Limit sign copy Use appropriate typefaces on signs Create theatrical effects Lighting Important but often overlooked element in successful store design Highlight merchandise Capture a mood Level of light can make a difference Blockbuster Fashion Departments .
The Knot Shop Can be administered through time release atomizers or via fragrance-soaked pellets placed on light fixtures EIGHT STEPS TO SUCCESSFUL RETAIL MERCHANDISING AND IN-STORE ADVERTISING 1. peaceful. think about your current and future customers. List your objectives in order of priority. As we progress through the procedures.AIE (http://www. refer back to your list to periodically to make sure you are keeping in line with your goals. and what you currently sell or plan to sell them. This thought probably conjures up panoply of opportunities. Define Marketing Goals & Objectives Before you get started. . The Magic Kingdom.com) Can use volume and tempo for crowd control Scent Smell has a large impact on our emotions Victoria Secret. respiratory rate and other physiological responses – attract customers and gain attention but can also be distracting Cool colors are relaxing. calm and pleasant – effective for retailers selling anxiety-causing products Sound & Scent Sound Music viewed as valuable marketing tool Often customized to customer demographics .aeimusic.Color Can influence behavior Warm colors increase blood pressure.
but varying mixtures of the different segments you already defined. Separate Business Lines This has probably already been done for you. If you feel you have more than ten. However. and wealth management. This document includes the extensive rationale for merchandising systems. as they will be familiar with who is shopping and living or working in the surrounding area. business. are adding new locations. you might want to simplify. Target Audience Your market segments are usually three to six identifiable groups of customers. or your merchandising system is a number of years old. convenience. as you may already have an existing merchandising system. it may make sense to start fresh. A merchandising system can unify your brand and improve the customer experience. for wearing apparel: men’s. . you can learn a lot about your customers by the cars they drive. in the banking industry. If you feel like you only have one group of customers you are marketing. For example. luxury car driving customers would likely be interested in retirement and insurance products. for fast food: value. you have more work to do. if you have recently merged. 4. and access to even more potential customers. When in doubt. it is safe to assume that customers shop in the neighborhood where they live. Chances are. For banks. However. and price. 3. Make a pie chart for each location describing the customer segment mix. How do you know which customers belong to each segment? With 25 or more retail outlets. and economy car driving customers may be interested in available credit. so it might seem too difficult to classify them. By examining your store locations. Rollout Merchandising Fixtures This step is optional. just look at the cars parked at the store. talk with the store manager. business lines are usually divided into personal. You get the idea. kids. If you can’t make a judgment on a neighborhood or location. you have numerous customers. Talk to your product managers and ask if they are aware of different business lines.2. try to find logical divisions among your product and services lines. Pickup truck and van driving customers would likely be interested in small business solutions. If this isn’t already accomplished. you can deduce the profiles of the customers and potential customers you have access to at each location. the profiles of each location are not distinct. women’s.
business line. choose the products. Make sure they are positioned correctly. Design Advertising Collateral This step is often outsourced to an advertising agency.5. Layout (Re-) Position merchandising fixtures Check the floor plans of your stores and verify in the field the location and orientation of your merchandising fixtures. Schedule Promotions Campaign schedules are completely up to you. including type. you need to have a database of all your merchandising fixtures. as sometimes they are moved into storage by the cleaning crew or obstructed by a plant that grew towards a window. collateral containers. branches or restaurants must be given data attributes for its visibility. and the tax season for financial institutions. each fixture in your stores. like Christmas for department stores and toy stores. Some retailers have obvious schedules to abide by. Once the campaigns . or only a few specific stores. Classify merchandising fixtures To do this. based upon the store it is located in. 7. Create Campaign Select Stores Choose the stores you would like to include in your current campaign. This process can be accomplished with new or existing merchandising systems. and/or brand emotions that match your customers’ needs during this campaign. services. This can be all of them. as well as where it is situated within that store. To organize your merchandising systems. certain regions. Select Collateral From your library of collateral pieces. and orientation. Your schedules will vary by industry and corporate objectives. 6. but it can also be done in-house if you have the resources. and container sizes.
Fortunately. faxed. you don’t have to re-invent the wheel each time you improve your strategy and launch another campaign. Additionally. Track Response Once a campaign has successfully launched. . specifying where everything will be installed. Lastly. and services rendered? Then compare this data with your strategy and gain insight into the effectiveness of your campaigns. the local store employees will receive Instructions (these can be mailed. you can measure its effectiveness in many ways.are scheduled. products bought. For example: how many brochures have been picked up. you can send out reminder emails.7 and the five steps it contains to fit your ongoing campaign objectives. Launch Campaign At this point. your work on your n-store marketing campaigns is finished. as well as detailed diagrams of the location they work in. When the launch date arrives. If all the stores are not in compliance after the launch. they will be told to report back to management when they have completed their tasks. You will repeat procedure 3. or accessed online) for the upcoming campaign. Instruct Employees While the campaign materials are being produced and shipped. you can adjust the settings in procedure 3. or follow up with phone calls to identify and resolve and issues. Refine Strategy Marketing is a continual process. The instructions will include the campaign schedule. you can observe in real time. 8. freeing up your time to attend to other pressing business matters. with this framework and process. how the stores comply with your instructions.5 from time to time as your marketplace changes and evolves. and your strategy must be continuously refined. emailed. the system will inform your printer of the quantities you need and how many to ship to each location.
yet effective. and even interactive kiosks. . They discovered the these practices produced real results – such significant results that branch. and plastic counterparts were already successfully accomplishing. just as their traditional wood. Shortly thereafter. let alone the expensive. online merchandising solutions began to appear on the marketplace. During the bubble expansion and after the burst. as well as up sell and cross-sell customers. merchandising systems they contained. based upon local needs and buying habits. chain and franchise operations began to invest tens of thousands of dollars into their merchandising systems – for each one of their stores. businesses realized that while e-commerce was a truly viable business model. These practices included the use of take-one displays. promising to save these companies from the cost of the brick and mortar buildings. metal. Along came the internet with ecommerce and its worldwide network access. retail marketing executives have used the in-store customer experience as a channel for raising public awareness of their companies’ products and services. However. window dressings. Today.Recent Developments in Retail Marketing For years. further promising to raise public awareness of products and services. as well as customizing their messages. in-store retail was truly and increasingly too valuable and rich a channel to leave behind. more and more companies are using lessons learned from the internet bubble era to enhance their online and in-store strategies. the following list of challenges further complicates these already daunting tasks: • Labor intensive campaigns • High degrees of merchandising discretion at the stores • No merchandising accountability at the stores • No awareness of merchandising presentation at the stores • No governance over store merchandising • The use of outdated and “home made” merchandising • The need to promote different products and services from multiple business units. posters. like uniting their brand throughout their store network. product displays.
category name of product shells. If marketers change the fragrance strategically and use more favorable fragrance. to 8. Damaged items on the shells and dust will make bad image towards the supermarket outlets and design of floor tiles can make significance influence to feeling of pleasure at shopping time. sanitary facilities. application of more attractive visual merchandising materials in their promotions will help to obtain better results. reduce average waiting time and encourage the impulse purchasing etc. number of impulse counters. lighting box.m. The lighting.m.m.00p. height of shells. It can significantly influence on consumer’s store choice decisions. Therefore managers can select appropriate lighting system that creates satisfaction of psychological needs of customers. Therefore. canola (Light ceiling). Therefore. of Gondola. cashier counters layouts.00p.m. Spaces between shells (Passage). managers can pay special attention to make attractive environment in the supermarket premises and make action to control the rush condition. convenience to selection of products. Supermarket managers should pay special attention on category layout. Design layout and cleanliness are the key elements of visual merchandizing programs other than product display. height of roof are key variables of design layout that helps to make customer relaxation. Majority of customers respond to the lighting more positively. They specially mentioned that lighting helps to select correct products.00a. color separation.Ways to improve merchandising Visual merchandising is the most important variable in in-store environment among the tested variables. in weekends. Even though there is no significant correlation between in-store fragrance and store choice decisions. no. it will be more significant to patronage . in weekdays and 10. to 9. reduce the time wasted and feel relaxation during the shopping tours. 58% of respondents mentioned that it is strongly influence on their store choice decisions. Therefore.00p. When designing the product display. Most of customers are willing to purchase products from supper markets from 6. the consumers’ preference can be changed according to the in-store fragrance used in the supermarkets.
The background music will also encourage customers to spend extra time in supermarkets. . it has low significance relative to the other elements of in-store environment. However.customers towards supermarkets and maintain the freshness within the supermarket premises. The soft and classic music are highly recommended than other type of music. And also customers will consider the shopping in such a supermarket is one of entertaining exercise. It will help to encourage customers to make impulse purchasing decisions in supermarkets.
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